State Dept. awards $40M for Enterprise Data Management Platform BPA Call to Palantir USG Inc

Contract Overview

Contract Amount: $40,064,940 ($40.1M)

Contractor: Palantir USG Inc

Awarding Agency: Department of State

Start Date: 2022-09-30

End Date: 2025-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $36.6K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE DATA MANAGEMENT PLATFORM BPA CALL

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94301

State: California Government Spending

Plain-Language Summary

Department of State obligated $40.1 million to PALANTIR USG INC for work described as: ENTERPRISE DATA MANAGEMENT PLATFORM BPA CALL Key points: 1. Significant contract value of $40M for data management. 2. Sole-source award to Palantir USG Inc. raises competition concerns. 3. Long-term contract duration (3 years) with potential for follow-on work. 4. Focus on software publishing (NAICS 511210) within the IT sector.

Value Assessment

Rating: questionable

The contract value of $40M is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar enterprise data management solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the enterprise data management platform.

Public Impact

Enhances data management capabilities for the Department of State. Potential for Palantir's technology to impact government data analysis and decision-making. Long-term commitment may lock the agency into a specific vendor's ecosystem.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Addresses critical data management needs
Long-term contract provides stability

Sector Analysis

This contract falls within the IT sector, specifically software publishing. The $40M award is significant for this category, especially given the sole-source nature.

Small Business Impact

The contract was awarded to Palantir USG Inc., a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government is receiving value and that justifications for non-competition are robust.

Related Government Programs

Software Publishers
Department of State Contracting
Department of State Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competitive bidding.
Vendor lock-in risk.
Limited transparency on justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $40.1 million to PALANTIR USG INC. ENTERPRISE DATA MANAGEMENT PLATFORM BPA CALL

Who is the contractor on this award?

The obligated recipient is PALANTIR USG INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $40.1 million.

What is the period of performance?

Start: 2022-09-30. End: 2025-09-29.

What is the justification for awarding this significant contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or a lack of viable alternatives. Without detailed documentation, it's hard to confirm the rationale. To ensure fair pricing, agencies should conduct thorough market research and potentially negotiate pricing aggressively, even in sole-source situations, possibly by benchmarking against similar, competitively awarded contracts if available.

What are the potential risks associated with relying on a single vendor for enterprise data management, especially given Palantir's history?

Risks include vendor lock-in, limited flexibility to adopt new technologies, and potential cost escalations over time. Palantir's technology is powerful but also complex and proprietary, which can create dependencies. Ensuring robust data security, clear exit strategies, and continuous performance monitoring are crucial to mitigate these risks.

How will the effectiveness of this Enterprise Data Management Platform be measured, and what are the key performance indicators?

Effectiveness should be measured against predefined objectives, such as improved data accessibility, enhanced data quality, faster analytical insights, and cost savings. Key performance indicators could include uptime, data accuracy rates, query response times, user adoption rates, and the successful integration of diverse data sources. Regular performance reviews are essential.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 19AQMM22R0331

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Palantir Technologies Inc.

Address: 635 WAVERLEY ST, PALO ALTO, CA, 94301

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $55,089,293

Exercised Options: $40,064,940

Current Obligation: $40,064,940

Actual Outlays: $9,181,549

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM22A0249

IDV Type: BPA

Timeline